Downtown Stroudsburg cornerstone sells for $1.9M

A centerpiece office building on the corner of Seventh and Main streets in Stroudsburg was sold Monday to an Allentown-area developer that plans to upgrade the half-empty building.

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By HOWARD FRANK

poconorecord.com

By HOWARD FRANK

Posted Jan. 17, 2013 at 12:01 AM

By HOWARD FRANK

Posted Jan. 17, 2013 at 12:01 AM

» Social News

A centerpiece office building on the corner of Seventh and Main streets in Stroudsburg was sold Monday to an Allentown-area developer that plans to upgrade the half-empty building.

The former Shearson-Lehman building, a modern brick five-story structure, sold for $1.9 million.

"It wasn't the largest building I've ever sold, but it's the most prestigious," said Associate Broker Dan Perich of Michael Baxter and Associates Commercial Real Estate.

The new owner is Grist Mill Development Company LLC of Wescosville. The company plans to upgrade the building's interior.

"The exterior is still in very good condition," Perich said. "There will be interior investments in the elevators, HVAC and, most important to new tenants, helping them with their build-out."

Build-outs are custom renovations to accommodate a tenant's needs. Work will begin next week.

The building was originally constructed to accommodate a bank on the ground floor. There's an unused, two-lane drive-through in the back. Perich hopes to place a bank in that spot.

"I already have two showings with bank branches in the next two weeks," he said.

The building has 10 tenants. Its largest is Morgan Stanley, which bought the old Shearson-Lehman Brothers and moved from its first floor space to a larger suite on the fifth floor.

The deal to sell the building was complicated by an absentee seller that neglected leases, many of which were expired. The building's former owner, Darlak Properties of Chicago, is under guardianship by a family member who also lives in Chicago.

Monroe County, which once expressed an interest in leasing space in the building, hasn't pursued it recently, according to Perich.

The building is at just 55 percent occupancy. But Perich said the offices will become more marketable with the new owner's investments. And that could be good for downtown Stroudsburg.

"More people working downtown equals more people going to the restaurants, more people in the shops," he said.